Vedant Fashions (MANYAVAR) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 sales reached INR 3,341 million, up 24% year-over-year, with business normalizing post a weak Q1 due to negligible wedding dates.

• Vedant Fashions is India's largest men's wedding and celebration wear company by revenue, OPBDIT, and PAT, with a dominant omni-channel presence and a diversified brand portfolio including Manyavar, Mohey, Twamev, Diwas, and Mebaz.

• The company expanded its retail footprint to 1.70 million sq. ft. across 650 EBOs in 255 cities globally, including 16 international stores.

• New brand launches and marketing campaigns, including onboarding Janhvi Kapoor for Mohey and launching Divas/Diwas by Manyavar, aimed at expanding market reach.

• Board approved unaudited standalone and consolidated financial results for Q2 and H1 FY25, with continued focus on branded fashion apparel and accessories.

Financial highlights

• Q2 FY25 revenue from operations was INR 2,679.45 million, up 22.7% year-over-year; sales were INR 3,341 million, up 24%.

• Q2 FY25 PAT was INR 677.46 million, up 37.3% year-over-year, with a PAT margin of 25%.

• H1 FY25 revenue from operations was INR 5,078 million, with a PAT of INR 1,294 million and PAT margin of 25.5%.

• Gross margin stood at 67.9% and EBITDA margin at 45.4% for Q2 FY25.

• Cash and cash equivalents (consolidated) increased to INR 440.31 million as of September 30, 2024.

Outlook and guidance

• Business has normalized with a positive start to Q3, aided by an early Diwali and favorable wedding dates.

• Management expects continued growth in the upcoming quarters, driven by the festive and wedding season.

• Growth strategy focuses on retail expansion in India and abroad, up-selling, cross-selling, targeted marketing, and disciplined acquisitions.

• No specific numeric guidance provided for store openings or growth rates.